OIL registers Rs 1690 crore profit in 2005-06

Guwahati, Sep 25 (UNI) The Oil India Limited (OIL) has recorded whopping Rs 1690 crore profit after tax in 2005-06 which is a 59 percent increase over the last year.

Addressing the AGM recently, Chairman and Managing Director of OIL M R Pasrija gave a detailed account of the company's overall performance and highlighted the initiatives undertaken in areas like exploration, production and selective diversification of the oil and gas value chain.

Increase in production of oil and gas coupled with high crude oil price resulted in the company crossing the turnover of $ 1.25 billion for the first time, he said.

OIL also completed drilling of deepest onshore horizontal well in India, which resulted in increasing the productivity to almost three times.

The total income for 2005-06 rose by 46 per cent to Rs 6037 crore as compared to Rs 4125 crore in the previous year.

The profit before tax rose by 65 per cent to Rs 2674 crore compared to Rs 1623 crore for the previous year while the profit after tax at Rs 1690 crore, a increase of 59 per cent compared to Rs 1062 crore in the previous year.

The total dividend given to the shareholders was 265 per cent for the year.

OIL has continued to increase crude oil production and recorded a crude oil sale of 3.16 million metric tonnes. Gas production at 2.27 billion cubic meters and sales of 1.74 billion cubic meters showed an increase of 13 per cent and 18 per cent respectively.

Mr Pasrija said the Brahmaputra river bed is another ''very prospective area'' for exploration which the experts believe has a high potential. Contract for carrying out the survey work in the area has already been finalised.

Survey work is expected to start from November. In another nominated block in Ganga Valley, after processing and interpretation of seismic data, two exploratory locations have been identified in the thrust belt area for drilling and action has been initiated for taking up the drilling work.

The drilling work is expected to be taken up in 2007-08. The OIL had acquired 14 exploratory blocks under the first five rounds of the NELP, out of which the company is operating in 6 blocks.

Drilling of the first exploratory well by OIL India in the NELP block was completed recently.

OIL has also submitted bids for a few prospective blocks on offer under NELP-VI.

UNI MT JYN SS1318